De-risking agricultural finance in Tanzania: Development results of Sida’s guarantee to PASS on access to finance, financial sector development and employment

This endline study assesses the development impact of the Sida Guarantee Agreement with the Private Agricultural Sector Support (PASS) in Tanzania, implemented from 2017 to 2024.

The US$20 million portfolio guarantee aimed to expand access to finance for agribusinesses, MSMEs, smallholder farmers, women and youth — groups traditionally underserved by formal financial systems. Over the implementation period, the guarantee supported over 21,000 loans worth approximately US$68.8 million, reaching an estimated 354,000 beneficiaries and contributing to the creation of up to 300,000 jobs.

The study examines the guarantee's relevance, effectiveness and institutional learning effects, and offers practical recommendations for the design of future guarantee instruments in Tanzania.